MN HF2260

Provides a total of 5 percent average rate adjustment for nursing facilities, effective October 1, 2014, comprised of a 3.75 percent operating payment rate increase and a 1.25 percent quality add-on.

Requires nursing facilities to use 75 percent of the 3.75 percent rate increase for compensation-related costs for direct employees, including wages, salaries, payroll taxes, and health/insurance benefits for employees hired after May 25, 2014.

Facilities must submit applications to the commissioner within six months of the effective date detailing how funds will be distributed, with the commissioner responding within three weeks of receipt.

Quality add-ons are calculated based on each facility's quality score under subdivision 44, with facilities scoring 40 or above receiving the full 1.25 percent add-on, prorated based on scores above 40.

Exempts administrators, central office corporate personnel, and employees paid under management contracts from the compensation-related cost increase requirements.